Where to find checking accounts with no monthly fees

Most large national banks charge $10 to $15 per month for a basic checking account, but you can find accounts with no monthly fee at online banks, credit unions, and some regional banks. The lowest-fee accounts are typically at online banks like Ally, Charles Schwab, and Discover, which charge nothing because they have no physical branches to maintain. Credit unions often waive fees for members who meet simple requirements like maintaining a small balance or setting up direct deposit. Some traditional banks like Ally and Schwab also offer no-fee checking to anyone who opens an account.

The catch is that "no monthly fee" does not mean "no fees at all." You can still face charges for overdrafts, out-of-network ATM use, wire transfers, or falling below a minimum balance. The banks listed here have low or zero fees across most of these categories, but the specifics vary by institution and change periodically, so you should check the current fee schedule before opening an account.

Key Takeaways

  • Online banks like Ally, Charles Schwab, and Discover charge no monthly maintenance fee and reimburse out-of-network ATM fees, making them the lowest-cost option for most people.
  • Credit unions typically charge no monthly fee if you maintain a small balance or set up direct deposit, and many reimburse ATM fees nationwide.
  • Traditional banks like Bank of America and Chase charge $10 to $15 monthly unless you meet balance or deposit requirements that most people cannot sustain.
  • Overdraft fees, wire transfer fees, and minimum balance requirements vary widely, so comparing the full fee schedule matters more than the monthly fee alone.
  • Your actual cost depends on how you use the account — frequent overdrafts or out-of-network ATM use can make a "free" account expensive.

Online banks with no monthly fees and ATM reimbursement

Ally Bank charges no monthly fee, reimburses all out-of-network ATM fees, and has no minimum balance requirement. Overdraft fees are $25 per transaction. Ally is FDIC-insured and offers a debit card with no foreign transaction fees, which matters if you travel or make international purchases.

Charles Schwab Investor Checking has no monthly fee, no minimum balance, and reimburses all ATM fees worldwide. Overdraft fees are $35 per transaction, but the account includes investment account access and higher interest rates on some balances. You do not need to be a Schwab customer to open this account.

Discover Bank charges no monthly fee, reimburses out-of-network ATM fees, and has no minimum balance. Overdraft fees are $25 per transaction. Discover also offers a savings account with higher interest rates than most banks, which you can link to your checking account.

These three banks have the lowest total cost for most people because they eliminate the two biggest hidden fees: monthly maintenance and out-of-network ATM charges. If you use ATMs frequently or travel, the ATM reimbursement alone can save you $100 to $200 per year compared to traditional banks.

Credit unions with low or no fees

Credit unions typically charge no monthly fee if you meet one simple requirement — usually a $25 to $100 minimum balance or a monthly direct deposit. Some credit unions waive the fee for all members regardless. The catch is that credit unions are membership organizations, so you have to join one first, which usually requires living or working in a specific area or belonging to a particular group.

Navy Federal Credit Union charges no monthly fee for members and reimburses out-of-network ATM fees up to $20 per month. You can join if you are military, a veteran, or a family member of either. Navy Federal has branches nationwide and is one of the largest credit unions in the country.

Alliant Credit Union charges no monthly fee, reimburses all out-of-network ATM fees, and has no minimum balance. You can join if you open a savings account with $25, which you can close after joining. Alliant is online-only but has access to over 80,000 ATMs through shared branching networks.

To find a credit union you can join, search the CO-OP Network or Shared Branch locator on the Credit Union Association website. Many employers, professional groups, and geographic areas have affiliated credit unions with low or no fees.

Traditional banks with the lowest fees

Large national banks like Chase, Bank of America, and Wells Fargo charge $10 to $15 per month for basic checking, but they waive the fee if you meet conditions like maintaining a $1,500 minimum balance or setting up direct deposit of $500 or more per month. For most people, these conditions are harder to meet than opening an account at an online bank or credit union.

Chase Total Checking charges $12 per month but waives the fee if you maintain a $500 minimum balance or have a direct deposit of $500 or more per month. Out-of-network ATM fees are $3 per transaction, and overdraft fees are $34.

Bank of America Checking charges $12 per month but waives the fee if you maintain a $1,500 minimum balance or have a direct deposit of $250 or more per month. Out-of-network ATM fees are $3 per transaction, and overdraft fees are $35.

If you already have a relationship with a traditional bank and can meet their balance or deposit requirements, staying put may be simpler than switching. But if you cannot maintain the minimum balance or do not have regular direct deposits, an online bank or credit union will cost you less.

What fees to watch beyond the monthly charge

The monthly maintenance fee is only one part of your total cost. Overdraft fees are the biggest hidden expense — most banks charge $25 to $35 per overdraft, and you can rack up multiple fees in a single day if several transactions post at once. Some banks offer overdraft protection, which links your checking account to a savings account and transfers money automatically to cover shortfalls, usually for a small fee or free.

Out-of-network ATM fees add up quickly if you travel or live in an area without your bank's branches. Traditional banks charge $3 per out-of-network withdrawal, which means using an ATM twice a week costs $300 per year. Online banks and credit unions that reimburse these fees eliminate this cost entirely.

Wire transfer fees typically run $15 to $30 per outgoing wire at traditional banks, though online banks often charge less or nothing. If you send money frequently, this matters. Minimum balance requirements can also be a hidden cost — if you have to keep $1,500 in your account to avoid a fee, that money is not earning interest elsewhere, which costs you money over time.

How to compare accounts before opening

Before opening an account, pull up the fee schedule on the bank's website and search for these specific items: monthly maintenance fee, overdraft fee, out-of-network ATM fee, wire transfer fee, and minimum balance requirement. Write them down side by side so you can see the total cost, not just the headline number.

Then think about how you actually use checking accounts. If you rarely overdraft and use your bank's ATMs, overdraft and ATM fees do not matter much. If you travel frequently or live far from branches, ATM reimbursement is worth switching banks for. If you send wire transfers regularly for business, wire fees matter. Your lowest-cost account depends on your habits, not on which bank advertises the lowest fee.

Most banks let you open an account online in 10 to 15 minutes with just your Social Security number, driver's license, and initial deposit. You can open multiple accounts to compare before deciding which one to use long-term, though most banks ask you to close unused accounts after a few months to avoid account maintenance fees.

Frequently Asked Questions

Can I switch banks without losing my direct deposits or automatic payments?

Yes. Give your new bank your routing number and account number, then update your employer and any companies that auto-pay from your account. Direct deposits usually switch within one or two pay periods. Keep your old account open for at least a month to catch any stragglers, then close it. Some banks offer a switching kit that automates this process.

Do online banks have the same FDIC protection as traditional banks?

Yes. All FDIC-insured banks, whether online or brick-and-mortar, protect your deposits up to $250,000 per account. Check the bank's website for the FDIC logo and insurance certificate. Credit unions are insured by the NCUA, which offers the same $250,000 protection.

What if I need to deposit cash into my account?

Online banks cannot accept cash deposits directly, so you have a few options: use a linked savings account at a traditional bank to deposit cash, then transfer money to your online checking account; use a retail partner like Walmart or CVS that accepts deposits for certain online banks; or open a second account at a local bank just for cash deposits. Credit unions often have shared branching networks that let you deposit cash at other credit unions nationwide.

Are there accounts with no overdraft fees at all?

Some online banks and credit unions offer overdraft protection that links to a savings account and transfers money automatically with no fee, or they simply decline transactions that would overdraft rather than charging a fee. Ask the bank directly whether they offer this option, as it varies by institution and account type.

How long does it take to open an account and start using it?

Online accounts open in 10 to 15 minutes and are usually ready to use the same day. Your debit card arrives by mail in 7 to 10 business days, but you can use the account for direct deposits and transfers immediately. Some banks offer temporary card numbers you can use online while you wait for the physical card.